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Fundraising hacks for VC and private equity funds

Historically, the process of winning capital from limited partners has been opaque.  However, in the last few years a few have started to use social media and become more transparent.  I particularly like OpenLP.com, Origins, and the Raise blog, all of which include content from multiple LPs.  

At Invesco’s conference on Emerging GPs, one of the highlights was a presentation by Laurie Weir summarizing CALPERS’ selection criteria under their Private Equity Emerging Manager Program Review.  Their Report gives granular detail on what they are looking for — and avoid — in fund managers.

Matthew Craig-Greene of consultancy MJ Hudson points out, “Most public plans publish meeting minutes, and these can be a very interesting place to find information on manager selection.  CALPERS and some others even archive videos of sessions.”

I’ve written a number of pieces relevant if you are fundraising for a private equity or venture capital fund: I suggest:

I’ve compiled here the best other resources I’ve found.  If you have any other resources to add, please contact me.

LIMITED PARTNERS’ PERSPECTIVE

Chris Douvos is almost certainly the LP who has been blogging the longest, at SuperLP.com.  (Incidentally, as an indicator of how high the bar is for a GP, he says, “I dove into our fund log from the last couple of quarters and found that the mean IRR (among VCs listing one) was over 36%.”)   Other LP bloggers include Blue Future Partners (BlueFP.com), Lindel Eakman (LDEakman), Trey Hart (LP2LP2VC.com), and Samir Kaji (PEVCBanker).

Origins is a podcast about Limited Partners, created by VC Notation Capital.  See for example their interview with Brad Feld.  

Sameer Jain, ActiveAllocator.com: Due Diligence Framework for Direct Investing

Denis Tse: Fund Management Craftsmanship: An LP’s Food for Thought for Emerging VC General Partners

Mesh Lakhani on his approach to angel and fund investing

Sapphire Ventures’ Top 10 tips for pitching an LP  

Pantheon: “Private equity fund manager due diligence and selection

Weathergage’s Annual Meeting

Lindel Eakman on joining Foundry Group

Alex Bangash: “VC is all about access

Katherine Barr: 500 Startups’ Premoney

6 Common Pitfalls VCs Make With LPs

Trusted Insight LP Panel

Who Invests In Investors: Homebrew LP Shares VC Performance Goals, Importance of Diversity & What They Look For In New Funds

Some Advice On “First Calls” With Fund Managers You Might Be Evaluating

Successful Fundraiser’s Philosophy: How Micro VCs Get Off the Ground & Succeed .  Here’s the Deck.

PEVCbanker.com on Tips to write a great venture fund pitch deck

2019 Venture Limited Partner survey (includes list of most active LPs)

In this segment of the a16z Podcast, three investors (who are also limited partners in a16z) — Andy Golden of the Princeton University Investment Company, Ben Gomez of Pilothouse Associates, and Edwin Poston and Mel Williams of TrueBridge Capital Partners — share their thoughts on tech valuations, liquidity in the markets, and what some in Silicon Valley may have a tendency to overlook.  

GENERAL PARTNERS’ PERSPECTIVE

Nick Chirls and Alex Lines of Notation Capital in Brooklyn reveal the pitch deck they used to raise their $8 million ‘pre-seed investment fund’ in “VC/Firm Fit

Brad Feld: raising a $150m fund

Physics Ventures: Why LPs Invested in Our First Fund

SAASTR: On raising a $180m fund

Elizabeth Yin, Hustle Fund: How I Raised a First-Time VC VC fund

Jonathan Struhl: On raising a VC Fund

Quora responses on: raising a first VC fund

Kirk Coburn: Raising a VC fund in Houston

Charlie O’Donnell: Lessons learned from raising a first-time VC fund
Five Questions for Vetting an Investment in a New or Emerging VC Fund

Hunterwalk.com:  Homebrew’s Second Annual LP Meeting: Why We Do Them

Mahendra Ramsinghani: How LPs conduct DD

A look into fundraising for aspiring venture capitalists

CLOSE RATES

A few VCs have shared their percentage close rates with LPs:

Homebrew: 100 Days of Fundraising

Confessions Of A VC Who Raised Money During Financial Armageddon

PLACEMENT AGENTS’ PERSPECTIVE

Evan Katz, Crawford Ventures: 44 Tips for Hedge Fund fundraising (but also applicable to VC/PE)

SELECT DATA SOURCES

These are particularly helpful for UHNWs:

SAMPLE VENTURE CAPITALISTS’ DECKS FOR LIMITED PARTNERS

Collected Venture Capital Pitch Decks: What VCs raised with to get capital to invest in startups

Venture capital LP one-pager for fundraising from Limited Partners

SURGE Ventures Series Seed & “A” Fund Pitch Deck

Notation Capital: VC/Firm Fit

Work Life

SELECT CONSULTANTS WHO ADVISE ON FUNDRAISING

(Note these are not placement agents.  A number of these firms have rich resources on their websites.)

Benjamin Ball Associates

Chestnut Advisory Group

Meyler Capital

MJ Hudson

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Comments

  1. HI DAVID, HAS BEEN A LONG TIME SINCE WE LAST SPOKE. gREAT COLLECTION OF RESOURCES. MOST PUBLIC PLANS PUBLISH MEETING MINUTES AND THESE CAN BE A VERY INTERESTING PLACE TO FIND INFORMATION ON MANAGER SELECTION. calperS AND SOME OTHERS EVEN ARCHIVE VIDEOS OF SESSIONS. MY TEAM AT mj HUDSON PERFORMS A SIMILAR SERVICE TO THOSE YOU MENTION ABOVE AND THOUGHT YOU MIGHT WANT TO INCLUDE FOR COMPLETENESS. MOST OF OUR CLIENTS ARE IN eUROPE, AT THE MOMENT, BUT MOST RAISE GLOBALLY. https://www.mjhudson.com/expertise/ir-marketing/